The nation's four largest brokerage houses are expected to contribute 20 billion yen to a securities safety fund so clients of bankrupt Sanyo Securities Co. can withdraw assets from the failed firm, sources said Tuesday.
The Finance Ministry has requested 10 billion yen from Nomura Securities Co., and 3.3 billion yen each from Daiwa Securities Co., Nikko Securities Co. and Yamaichi Securities Co., officials of the ministry said. Its request comes only a day after Tokyo-based Sanyo, a second-tier brokerage, filed for protection from creditors under the Corporate Rehabilitation Law, thus becoming the first listed brokerage to fold since the end of World War II.
Although the fund, which has assets of about 35 billion yen, is only allowed to provide up to 2 billion yen to each bankrupt brokerage that seeks the funds, its limit will be lifted for the protection of Sanyo clients.